Latvia HR and Payroll Glossary: 13 Local Terms and Acronyms Explained

The terms and acronyms you meet on payslips, tax and employment documents in Latvia. Figures are for 2026; the calculations are on Latvia's HR data page and in the take-home pay calculator.

Algas nodokļa grāmatiņa Atlaišanas pabalsts IIN Ikgadējais atvaļinājums Neapliekamais minimums Papildu likme Pārbaudes laiks Solidaritātes nodoklis Uzteikuma termiņš VDI VID VSAA VSAOI

Tax

Algas nodokļa grāmatiņa Salary tax book

algas nodokļa grāmatiņa

An electronic record the employee files with one employer through the State Revenue Service's online system. Only that employer may apply the non-taxable minimum and any reliefs for dependants; other employers withhold without them. Source

IIN Personal income tax

iedzīvotāju ienākuma nodoklis

25.5% on annual taxable income up to €105,300 (the social-insurance ceiling) and 33% above, after deducting employee social insurance and the non-taxable minimum. Payroll withholds 25.5%; the 33% part is settled in the annual return. Source

Neapliekamais minimums Non-taxable minimum

neapliekamais minimums

The tax-free amount deducted from pay before income tax: €550 a month (€6,600 a year) in 2026, the same for everyone regardless of income since 2025. It is applied by the employer holding the employee's tax book. Source

Papildu likme Additional income tax rate

iedzīvotāju ienākuma nodokļa papildu likme

An extra 3% on total annual taxable income above €200,000, including capital income, paid by the individual with the annual return rather than through payroll. Source

Solidaritātes nodoklis Solidarity tax

solidaritātes nodoklis

On pay above the €105,300 contribution ceiling, the full 34.09% keeps being withheld during the year as solidarity tax. After year-end the State Revenue Service refunds the employer the excess over the 25% solidarity rate, so the employer's net cost above the ceiling is 14.5% while the employee's 10.5% effectively has no ceiling. Source

Social security and pensions

VSAOI Compulsory state social insurance contributions

valsts sociālās apdrošināšanas obligātās iemaksas

Latvia's social insurance contribution: 34.09% of gross pay for an employee insured for all risks, of which the employee pays 10.50% and the employer 23.59%. The maximum contribution base is €105,300 a year; the employee's share is deductible for income tax. Source

Pay and payroll

Ikgadējais atvaļinājums Annual paid leave

ikgadējais apmaksātais atvaļinājums

At least four calendar weeks a year, not counting public holidays; one part taken in a year must be at least two consecutive weeks. Source

Employment law

Atlaišanas pabalsts Severance pay

atlaišanas pabalsts

On redundancy and other no-fault grounds: one month's average earnings for under 5 years' service, two months for 5–10 years, three months for 10–20 years and four months for 20 years or more. Source

Pārbaudes laiks Probationary period

pārbaudes laiks

Up to 3 months (up to 6 months under a collective agreement with a trade union), shorter for short fixed-term contracts. Either side may end the contract during probation on 3 days' written notice without giving reasons. Source

Uzteikuma termiņš Notice period

uzteikuma termiņš

Employer notice depends on the ground: 10 days for reasons such as a breach of duties, health or lack of competence, and one month for redundancy, reorganisation or liquidation. An employee may resign on one month's written notice. Source

Agencies and institutions

VDI State Labour Inspectorate

Valsts darba inspekcija

The State body that supervises compliance with the Labour Law, working time, pay and occupational safety, and can fine employers. Source

VID State Revenue Service

Valsts ieņēmumu dienests

Latvia's tax authority, which collects both income tax and social insurance contributions. Employers register new hires with VID before work starts and file a monthly report on employees' pay, tax and contributions. Source

VSAA State Social Insurance Agency

Valsts sociālās apdrošināšanas aģentūra

The agency that pays pensions and sickness, parental and unemployment benefits from the contributions collected by VID. Employers deal with it mainly over benefit claims, not payments. Source

For Japan, see the Japan HR Glossary.